WASHINGTON (Reuters) - Swiss bank UBS AG has agreed to a deal with the U.S. Justice Department that would let the bank avoid tax-violation charges in exchange for identifying some of its U.S. account holders and paying $780 million in fines.
Here are the key terms of the deal:
- UBS, under orders by Swiss market regulators, is to give the United States identities and account information of “certain” U.S. customers. Details are to be filed under seal with U.S. federal court and turned over as soon as the court accepts the agreement.
- UBS agrees to pay $780 million in fines, interest and penalties. This includes $200 million to be paid to the U.S. Securities and Exchange Commission. The remainder is to be paid to the Justice Department over 18 months, with options to pay early or extend the terms up to four years.
- UBS acknowledges that it helped U.S. taxpayers open accounts that concealed their identities from the U.S. Internal Revenue Service. About 17,000 of 20,000 U.S. cross-border clients concealed their identities and the existence of their accounts, with $20 billion in assets, from the IRS, the Justice Department said.
Some of these clients are unindicted co-conspirators.
The business generated about $200 million a year in revenue for UBS from 2002 to 2007, it said.
- UBS agrees to quit providing cross-border banking services to U.S. clients with undeclared accounts.
- After 18 months, the U.S. government will recommend dismissal of charges against UBS providing it honors the terms of the agreement.
Reporting by Randall Mikkelsen; Editing by Tim Dobbyn